---### Loan Repayment and Interest Calculation#### Problem Statement:If a person borrows $2900.00 and, after 9 months, pays off the loan in the amount of $3008.75, what per annum rate of interest was charged? \[ \boxed{} \]$\% \text{ (Round to the nearest tenth as needed.)}$#### Options:- [ ] View an example - [ ] Textbook---This problem requires you to determine the annual interest rate charged on a loan. The principal amount borrowed is $2900.00, and the total amount paid after 9 months is $3008.75. Use the simple interest formula to find the annual interest rate.The simple interest formula is:\[ I = P \times r \times t \]Where:- $ I $ is the interest- $ P $ is the principal amount- $ r $ is the annual interest rate (as a decimal)- $ t $ is the time the money is borrowed for, in yearsYou need to rearrange the formula to solve for $ r $:\[ r = \frac{I}{P \times t} \]First, calculate the interest ($ I $):\[ I = \text{Total Amount Paid} - \text{Principal} \]\[ I = 3008.75 - 2900.00 \]\[ I = 108.75 \]Since the loan is paid off after 9 months, convert this time period to years:\[ t = \frac{9}{12} = 0.75 \text{ years} \]Now, substitute the known values into the rearranged formula:\[ r = \frac{108.75}{2900 \times 0.75} \]Finally, convert the rate from a decimal to a percentage by multiplying by 100 and round to the nearest tenth:\[ r (\%) = r \times 100 \]Make sure to follow these steps to find the correct annual interest rate.

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Answered: If a person borrows $2900,00 and, after…

If a person borrows $2900,00 and, after 9 months, pays off the loan in the amount of $3008.75, what per annum rate of interest was charged? % (Round to the nearest tenth as needed.)

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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